Derivative Instruments

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Note 7 — Derivative Instruments

In the normal course of business, Cleco utilizes derivative instruments, such as natural gas derivatives and FTRs, to mitigate volatility of overall fuel and purchased power costs.

Cleco has not elected to designate any of its current instruments as an accounting hedge. Generally, Cleco’s derivative positions are subject to netting agreements that provide for offsetting of asset and liability positions as well as

related collateral with the same counterparty. At June 30, 2025, and December 31, 2024, there were no fair value amounts offset on the balance sheets and no collateral posted with or received from counterparties. The following table presents the fair values of derivative instruments and their respective line items as recorded on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets at June 30, 2025, and December 31, 2024:

	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT JUNE 30, 2025		AT DEC. 31, 2024
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	6,067	$	2,084
Current	Energy risk management liabilities	(281)		(256)
Natural gas derivatives
Current	Energy risk management assets	4,609		9,210
Non-current	Energy risk management assets	3,069		—
Current	Energy risk management liabilities	(60)		—
Commodity-related contracts, net		$	13,404	$	11,038

The following tables present the effect of derivatives not designated as hedging instruments on Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2025, and 2024:

Cleco
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2025		2024		2025		2024
Commodity-related contracts
FTRs(1)	Electric operations	$	3,100	$	782	$	4,135	$	1,508
FTRs(1)	Purchased power	(2,522)		(827)		(3,124)		(2,198)
Natural gas derivatives(2)(3)	Fuel used for electric generation	(1,162)		(3,475)		(2,100)		(22,176)
Total		$	(584)	$	(3,520)	$	(1,089)	$	(22,866)

(1) FTRs - Unrealized Gains (Losses)

Both the three and six months ended June 30, 2025, include unrealized gains of $0.1 million. Both the three and six months ended June 30, 2024, include unrealized losses of $(0.2) million. Unrealized gains (losses) associated with FTRs are recorded through Accumulated deferred fuel on Cleco’s Condensed Consolidated Balance Sheet.

(2) Natural gas derivatives - Unrealized (Losses) Gains

The three and six months ended June 30, 2025, include unrealized losses of $(12.1) million and $(4.7) million, respectively. The three and six months ended June 30, 2024, includes unrealized gains of $8.7 million and $10.1 million, respectively. Unrealized gains (losses) associated with natural gas derivatives are recorded through Accumulated deferred fuel on Cleco’s Condensed Consolidated Balance Sheet.

(3) Natural gas derivatives - Realized Losses

For the three and six months ended June 30, 2025, there were no realized gains (losses) recorded. Both the three and six months ended June 30, 2024, include realized losses of $(1.5) million. Realized gains (losses) are recorded through Accumulated deferred fuel on Cleco’s Condensed Consolidated Balance Sheet.

Cleco Power
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2025		2024		2025		2024
Commodity-related contracts
FTRs(1)	Electric operations	$	3,100	$	782	$	4,135	$	1,508
FTRs(1)	Purchased power	(2,522)		(827)		(3,124)		(2,198)
Natural gas derivatives(2)	Fuel used for electric generation	(1,162)		(7,902)		(2,100)		(15,657)
Total		$	(584)	$	(7,947)	$	(1,089)	$	(16,347)

(1) FTRs - Unrealized Gains (Losses)

Both the three and six months ended June 30, 2025, include unrealized gains of $0.1 million. Both the three and six months ended June 30, 2024, include unrealized losses of $(0.2) million. Unrealized gains (losses) associated with FTRs are recorded through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet.

(2) Natural gas derivatives - Unrealized (Losses) Gains

The three and six months ended June 30, 2025, include unrealized losses of $(12.1) million and $(4.7) million, respectively. The three and six months ended June 30, 2024, includes unrealized gains of $8.7 million and $10.1 million, respectively. Unrealized gains (losses) associated with natural gas derivatives are recorded through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet.

(3) Natural gas derivatives - Realized Losses

For the three and six months ended June 30, 2025, there were no realized gains (losses) recorded. Both the three and six months ended June 30, 2024, include realized losses of $(1.5) million. Realized gains (losses) are recorded through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet.

The following table presents the volume of commodity-related derivative contracts outstanding at June 30, 2025, and December 31, 2024, for Cleco and Cleco Power:

	UNIT OF MEASURE	TOTAL VOLUME OUTSTANDING
(THOUSAND)		AT JUNE 30, 2025	AT DEC. 31, 2024
Commodity-related contracts
FTRs	MWh	14,630	6,720
Natural gas derivatives	MMBtus	49,391	18,595